10/8/2018, 6:43 PM (Source: TeleTrader)
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Moody's downgrades BP's outlook to stable

Buybacks and dividends have deteriorated credit metrics, offsetting the increase in profits and operating cash flow generation of BP Plc, Moody's Investors Service said on Monday, explaining its decision to lower the outlook on the oil company's A1 rating to stable from positive. It noted rising oil prices, growing upstream production and a drop in operating costs, but warned a rise in ratings wouldn't be considered within a year or six months more than that.

The credit appraiser highlighted the deal for the purchase of shale and gas assets in the United States from BHP Billiton for $10.5 billion, saying it would weigh on finances. The transaction should be funded with new shares by 50%, with the rest covered by cash. On the flipside, the agency praised the "large and diversified reserves and production base" and the stake of almost one fifth in Rosneft.

BP, formerly British Petroleum, has a 'value over volume' approach for upstream and an integrated business model, with a profitable downstream business, the report adds.

Baha Breaking News (BBN) / IT